Polygon, the leading Ethereum Layer-2 scaling solution, has migrated its native $MATIC token to a new token, $POL. This transition is part of Polygon's plan to advance its infrastructure and integrate it with zero-knowledge (ZK) technology.
Reasons for migrating to $POL
The upgrade from $MATIC to $POL is crucial for Polygon’s ambitious plans to evolve into a zero-knowledge Ethereum Virtual Machine (zkEVM) system under its “Polygon 2.0” roadmap. POL will eventually be used across multiple interoperable blockchains within the Polygon ecosystem. Polygon’s roadmap envisions $POL as a versatile token that will serve several functions beyond gas fees and staking.
Transition process
For most $MATIC holders, the transition to $POL will be seamless. If you hold $MATIC on the Polygon PoS chain or centralized exchanges, your tokens will automatically convert to $POL on a 1:1 basis. However, if you hold $MATIC on the Ethereum network or on Polygon’s zkEVM layer 2, you will need to manually migrate your tokens to $POL. This can be done using a migration contract provided by Polygon. The process is straightforward but is recommended for experienced users to avoid any potential issues.
Implications for token holders
With the transition to $POL, Polygon introduces new tokenomics that are designed to support the network’s long-term growth. One of the key changes is a new annual emission rate of 2%. This emission rate is split between validator rewards and a community treasury.
Thus, $POL will play a crucial role in Polygon’s broader technology stack. It will be used in block production, zero-knowledge proof generation, and participation in Data Availability Committees (DACs). These functionalities are critical for maintaining and expanding Polygon’s capabilities as a leading Layer-2 solution.
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